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Leasing a car has its pros and cons. Among the advantages, one can note a decrease in the cost of acquiring a car and the ability to update it after a certain period of time without having to sell the old car. Also, leasing is a tax deduction for businesses. However, the downsides include potential additional insurance and maintenance costs, restrictions on vehicle use, and limited flexibility in model and configuration choices. In addition, after the end of the lease, the car does not belong to you. All these factors must be considered when deciding whether to lease a car.
The choice between renting or leasing a car depends on your individual needs. If you want access to a car for a short period of time (usually from a few days to a few months), then renting may be the best choice.
A loan is a form of financing in which the borrower receives money to buy a car and pays it back according to an agreed payment schedule. Leasing is an alternative form of financing in which the borrower rents a car for a fixed period of time, usually 2 to 5 years. At the end of the lease term, the borrower can return the car or buy it back at an agreed price, which can be more profitable than buying a car on credit.
Leasing a car can be unprofitable due to the fact that it is an additional source of financial costs. In addition to other expenses such as insurance, maintenance, fines, taxes, interest, etc., leasing can be much more expensive than if you rented a car